Volkswagen (VW) has agreed to pay California, which will include paying the California Air Resources Board (CARB), an additional \u00a354 million for the remaining 15,000 vehicles affected in the German automaker’s cheating scandal.<\/p>\n
The settlement is reportedly provided with the intentions of mitigating the environmental harm caused by the cheating.
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This latest U.S. settlement is in response to a lawsuit in relation to the 3.0 litre VW, Audi and Porsche diesel vehicles that allegedly violated the Clean Air Act and California law, sold between 2009 and 2012. The Californian air regulators who have been heavily involved in the VW investigations will receive \u00a334 million as part of the settlement.<\/p>\n
The settlement is notably less than the previous settlements, which is due to the 3.0 litre vehicles being “far fewer in number and pollute less” than the 2.0 litre vehicles which were part of the \u00a312.3 billion settlement, according to Cynthia Giles, an assistant administrator at the U.S. Environmental Protection Agency (EPA).<\/p>\n
The settlement makes an assumption that the vehicles sold from 2012 onwards can be fixed. If that isn’t the case, VW must agree to repurchase those as well. The CARB notes that “the newer vehicles appear to be likely candidates for a successful emissions compliant modification. However, no modification has been approved, and if the manufacturers cannot provide one, these vehicles will become eligible for buyback or lease cancellation as well”.<\/p>\n
The CARB has noted that a public consultation will decide how and where the money is spent. This could have symbolic importance for affected vehicle owners; allowing them to have a say on how the money is allocated.<\/p>\n